8 Occupations With Increased Demand

6. Production
7. Construction and Extraction
8. Healthcare Support

The Bottom Line
Online job postings have increased in almost every sector according to Monster’s Employment Index, with computer, education and office and administrative jobs also seeing double-digit percentage growth. So what does this mean for our economy? What’s important to note about Monster’s numbers is that mining, manufacturing and transportation and warehousing are the industries showing the largest growth – with mining seeing an impressive 53% gain since 2009. Any economic analyst will tell you this means an increase in production, a possible early indicator of economic recovery. Good news, even if you’re not looking for a job.

View all 8 ocupations via Financial Edge

Design Fees: Self-Inflicted Losses

Via ARCHITECT
By: Ernest Beck

The second installment of our series on architectural fees finds that increased competition for even the smallest of projects is leading firms to slash rates. But have things gone too far?

When a major New York financial institution asked three architecture firms to submit bids for a high-end office renovation last year, it was a relatively small project, but one that was eagerly sought by the bidders to keep revenue flowing in tough times. What transpired reflects the cutthroat nature of the industry these days: Two firms came in at around $175,000, while the third offered a bargain-basement price of $100,000, according to one of the participants, who asked to remain anonymous to protect client confidentiality.

Not surprisingly, the low bidder won, prompting an angry response from one of the other bidders. “If we went in at $160,000, it would have been low-balling—and dangerously low—but not impossible,” says this person, principal of a small New York design boutique that specializes in interior renovations. “But bidding $100,000 is impossible. … [T]hey won’t make any money.”

The recession has wreaked havoc on the architecture industry in many ways, from a rollback in projects to staff layoffs to declining revenue. One of the most devastating aftershocks, however, has been the practice of fee-cutting, as firms struggle to survive by meeting client demands to save money and tighten budgets.

While no exact numbers are available, architects say fee-cutting is widespread. Scott Kuehn, partner at Denver-based H+L Architecture, an 85-person firm that specializes in healthcare, education, science, and technology, had one long-term client ask for a 10 percent cut on all future work. This client, Kuehn says, “indicated that economic pressure and uncertainties … were driving similar requests to all business partners, suppliers, and vendors.”

For complete article click here.

NYC Council Approves New Domino Project

The landmarked Domino Refinery complex will be preserved and adapted for residential, commercial, and cultural uses, including 30- and 34-story apartment buildings. Rafael Viñoly Architects developed the overall master plan as well as the conceptual design for all new buildings on the site; Beyer Blinder Belle Architects & Planners developed architectural concepts for the refinery; and Quennell Rothschild and Partners developed the landscape design. The master plan will transform the industrial complex into a modular, mixed-use, and multi-income residential development that emphasizes open space and public access to the river while preserving the refinery and its famed 40-foot-tall Domino Sugar sign. The project will create approximately 2,200 residential units, 660 of which will be affordable. The more than 223,500 square feet of retail will include a grocery store that will adhere to FRESH zoning standards in addition to approximately 143,000 square feet of community facility space. A nearly one-acre open lawn will anchor a new public waterfront esplanade.

Read more posts from the NYC AIA via eOCULUS here.

Nonresidential Construction to Grow by 3 Percent in 2011

AIA’s Consensus Construction Forecast predicts a 20 percent-plus decline in nonresidential construction spending through 2010.

According to the semi-annual Consensus Construction Forecast recently released by the American Institute of Architects (AIA), the poor conditions created by a combination of surplus nonresidential facilities, low demand for space, declining commercial property values, and lack of available credit are laying the groundwork for drop of more than 20 percent in nonresidential construction spending this year, despite slight improvements in the overall economy.

Sydney, Australia’s “One Central Park” by Jean Nouvel Moves Forward

image: Atelier Jean Nouvel/Designboom

Jean Nouvel’s design for “One Central Park” in Sydney, Australia finally approved.

Much more via Designboom here.

Architects cut hiring

By CHRISTOPHER S. RUGABER (AP)

WASHINGTON — Industries driving job growth this year added fewer workers in June, a sign that the overall hiring picture could get worse.

Manufacturers, for example, added only 9,000 jobs last month, the Labor Department said Friday in its latest monthly employment report. That’s the fewest for the sector this year and below its average monthly gain of 25,400 over the previous five months.

Temporary help firms, meanwhile, added 20,500 positions. That was the smallest gain in nine months.

The two industries have added more than 330,000 jobs so far this year. That’s slightly more than half the total gain in private payrolls of 593,000. As a result, a slowdown in those two sectors could shrink overall job gains in the months ahead.

The declines could be temporary. But in manufacturing, the growth in factory production earlier this year was partly a result of companies restocking their warehouses, after cutting them to the bone in the recession. Many economists worry that production will slow now that the need to replenish inventories is not as great.

Private employers created a net total of 83,000 new jobs in June. That was up from May but not nearly enough to speed the recovery.

Total payrolls fell 125,000, dragged down by the end of 225,000 temporary census jobs. The jobless rate fell to 9.5 percent from 9.7 percent.

Retailers cut 6,600 jobs, the second straight month of losses. That’s a reversal from earlier this year, when stores began hiring again after a strong winter holiday shopping season.

The renewed job losses are a sign that merchants aren’t seeing a strong rebound in consumer spending.

Other industries that are hurting could get worse. Jobs in architecture declined, a sign that fewer commercial building will be designed, said Ken Simonson, chief economist at the Associated General Contractors of America.

That could lead to more job cuts in construction. The industry lost another 22,000 positions in June. That leaves about 5.6 million people employed in the construction industry, the lowest level in almost 14 years, Simonson said.

These and other details can be found in the government’s latest jobs report.

On June 24, 2010 Polshek Partnership became Ennead Architects LLP

Announcement

‘Masterpieces’ on hold, waiting for better times

Hat tip to CNN Living

This article focusses on the job market as well.  Give it a read.

Aqua Building, Chicago, IL.

Some stunning buildings have appeared in American cities the past four years — buildings, like the Aqua skyscraper in Chicago, Illinois, that attest to the creativity of 21st-century architecture.

But there might be fewer of them in the near future, because the recession has forced many architects to tone down their ambition.

“A lot of projects have been delayed, a lot of projects have been scaled back, a lot of projects have been scrapped. … It’s not a time to see a lot of architectural masterpieces being created,” said Kermit Baker, chief economist of the American Institute of Architects.
 
Baker said the emphasis today is on value.

 “I think most buildings that are being built are very much focused on managing cost,” he said. “So you tend to see less creativity in that environment, less exciting designs, less upscale materials being used in them.”

 At Aqua, the curved terraces vary slightly from floor to floor, giving the 82-story tower a soft, billowy look — as though Chicago’s celebrated winds are ruffling its façade. It’s an award-winning structure that stands out for its innovative design by Studio Gang Architects. But its construction was well under way before the recession.

 Now “we are hearing that there’s more renovation work than construction work — kind of retrofitting existing buildings rather than building new ones,” Baker said.

It’s really difficult … for students coming out of school to find appropriate positions … we’re afraid that we’re going to lose a generation of architects.
–George Miller, president of the American Institute of Architects

It might not be the most stimulating work for innovative minds, but at least it’s work in what industry experts say has become an intensely competitive market. Where there were once two or three firms competing for a small project, now there are 20 or 30 as larger firms move in to take whatever jobs they can get.

The larger firms might “rather do a skyscraper, but if they can get a much smaller job they will, to keep the firm going and to keep people employed,” said Robert Campbell, a free-lance architecture critic for The Boston Globe. “And that drives people out of the field at the bottom who would otherwise have been getting those small jobs.”

Many firms have had to lay off employees to stay afloat. According to the U.S. Bureau of Labor Statistics, employed architects have dropped from an average of 233,000 in the first quarter of 2008 to 217,000 in the first quarter of 2009 and 198,000 in the first quarter of 2010.

George Miller, the president of the AIA and a partner at world-renowned architecture firm Pei Cobb Freed & Partners, worries about the long-term effects this job shortage will have on the industry.

“It’s really difficult, of course in these last several years, for students coming out of school to find appropriate positions in the field,” he said. “That really concerns all of us because we’re afraid that we’re going to lose a generation of architects.

… There are going to be fewer of us around to do the work that really needs to be done in the future.”

What will be the architectural work of the future? Miller says it will likely be energy-efficient design and a renewed focus on infrastructure, especially in urban areas.

“We’re going to be considering not only the individual building solution, but also the way in which our buildings fit in neighborhoods and communities and regions,” he said. “We really have to have a plan now that considers the infrastructure of our communities. … I think if we’re smarter in terms of designing our urban centers, we’ll be more efficient in terms of the utilization of our natural and physical resources.”

Experts agree that architecture is a cyclical industry and that the market will eventually rebound. The question is when.

“It’s always been highs and lows, highs and lows,” said Campbell, who is also a registered architect. “I remember in 1975 I was working for a prominent firm in Harvard Square, and we dropped from 68 [employees] to 20. And that was the oil embargo, ’74, and that led to an extremely steep recession but a short one — not like this one that’s lasted so long.”

Some architects think recovery might be around the corner.

“We are seeing the private sector picking up,” said Thomas Fridstein, head of global architecture for AECOM, a provider of technical and management support services. “I feel like we’ve been through the worst, we’ve sort of hit the trough of the recession and things are on the upturn. We’ve had some major commercial clients contacting us about projects potentially starting up again, so that’s a very positive sign.”

It’s a positive sign for the nation, too, because busy architects are a bellwether of economic stability.

“If you don’t design it, you can’t build it,” Baker said. “So [architects] are really the first step in the process toward seeing a recovery.”

2010 P/A Awards: Preston Scott Cohen

[brightcove vid=80148287001&exp=403535636&w=300&h=225]

Video interview via Architect TV.

Slump in Demand for U.S. Architects May Be Near End

Our company began to experienc a slight uptick in hiring during May to present.  This article by Prashant Gopal in Bloomberg Business seems to confirm what we are reporting:

May 19 (Bloomberg) — A leading indicator for U.S. commercial property construction showed signs of improvement in April, indicating a rebound in building may be near, the American Institute of Architects said.

The Architecture Billings Index climbed to 48.5 from 46.1 in March, the third straight monthly increase, the Washington- based group said today. While any score of less than 50 indicates a drop in demand from the previous month, April’s decline was the smallest since January 2008.

“It appears that the design and construction industry may be nearing an actual recovery phase,” Kermit Baker, the group’s chief economist, said in a statement. “The economic landscape is improving.”

The index is an indicator of future building of offices, warehouses, apartments and retail properties. There is typically a lag of about nine to 12 months between the time architects bill clients and when developers start spending on construction, according to the AIA.

Overall construction spending in the U.S. increased 0.2 percent in March, fueled by federal stimulus spending on power plants, hospitals and transportation projects, the Commerce Department said May 3. Private construction spending for non- residential projects fell 0.7 percent in March from the previous month and 26 percent from a year earlier.

Commercial Property Values

The Moody’s/REAL Commercial Property Price Index fell 0.5 percent from February, the second straight monthly decline, Moody’s said today in a report. Prices slid 25 percent from a year earlier and are down 42 percent from the peak reached in October 2007.

RNL, a Denver-based company that provides architectural work for mixed-use projects in the western U.S. and overseas, has added five employees over the past three months. It trimmed its workforce to about 150 from 250 during the past two years, said Richard von Luhrte, the firm’s president.

Foreign investors, public-private partnerships and landlords seeking to renovate distressed properties are driving von Luhrte’s business, he said in an interview.

“We’ve seen the bottom and we’re stable,” he said. “Obviously the last year has been challenging, but there are some opportunities out there.”

The Northeast was the strongest of the four regions measured by the American Institute of Architects index, registering 51 and showing growth in demand for commercial architects. It was followed by the Midwest at 49.2, the South at 46.5, and the West at 44.7.

The Architecture Billings Index is based on a survey of firms owned by AIA members. Participants are asked each month whether their billings increased, decreased or stayed the same.